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Whitehaven shares up on soaring sales

Greg Roberts

Whitehaven Coal has shrugged off worries about two years of weak coal prices by declaring its expansions are on track and that it plans to sell a stake in its Vickery project.

The NSW miner's shares shot up on Tuesday after it said it sold 22 per cent more coal in 2013/14 than the previous year and hit better-than-expected record production levels.

The stock climbed 7.5 cents, or five per cent, to $1.55.

In a blow to the fierce protest campaign to stop its Maules Creek project in NSW, Whitehaven said it was tracking ahead of schedule.

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Chief executive Paul Flynn said Maules Creek, which would more than double Whitehaven's current production with 13 million tonnes a year, was more than half complete and on track to be delivered within its $767 million budget.

Whitehaven agreed in June to stop clearing operations in the Leard State Forest ahead of a civil case hearing next month brought by the NSW Environmental Defenders Office.

Mr Flynn also flagged the sale of a 20 to 30 per cent stake in its nearby Gunnedah Basin Vickery mining project within the next 12 months.

Chief executive Paul Flynn said as soon as the 4.5 million tonne a year project was approved, Whitehaven would hold formal discussions with joint venture partners.

NSW government approval has been delayed, but Mr Flynn said he expected it to be granted in the September quarter.

A Japanese partner would be likely, with Whitehaven recently opening an office in Tokyo and employing a local representative to market Maules Creek's coal.